Accounting
). Accounting exam chapters 7, 8, and 9
An Assets Account
Debit side is increase Credit side is decreae
Liability
Debit to record decrease Credit to record increase
Straight line method
cost - residual / years of useful life
Declining balance methods
depreciation = remaining book value * accelerated depreciation rate
dep = rbv * acel dep rate
Last In, First Out - LIFO
An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.
First In, First Out - FIFO
An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation.
income statement approach
net credit sales * percent of estimated collectible / amount of journal entry
Interest
= principle * interest rate * time